The Euro to Collapse? Nicolas Sarkozy Threatened to Pull out of Euro over Greece row
2010 05 15

From: guardian.co.uk


French president Nicolas Sarkozy threatened to pull out of the euro unless Angela Merkel dropped her hostility to the EU´s safety net plan.

French president Nicolas Sarkozy warned of damage to Franco-German relationship if Angela Merkel opposed EU plan

Nicolas Sarkozy threatened to abandon the euro unless Angela Merkel dropped her hostility to the EU´s €750bn safety net for the single currency, sources in Brussels and European capitals said yesterday.

In a confrontation between Europe´s two most powerful politicians, the French president said he would walk out of the talks and warned of lasting damage to the Franco-German relationship unless the German chancellor backed the plans.

"It was a standup argument. He was shouting and bawling," said one official in Brussels. "It was Sarkozy on steroids," said a European diplomat. "He´s always very energetic. This time he was very emotional, too." The French leader banged his fist on the table, according to yesterday´s El País newspaper in Spain.

The showdown, late on Friday last week, kicked off a momentous week in Europe, raising fears – shared strongly in Washington and elsewhere – that the euro could collapse, wreaking untold damage on the world economy and also raising questions about the very future of the EU.

Merkel warned on Thursday that the single currency crisis triggered by Greece´s debt debacle was about much more than money. "If the euro fails, it is not only the currency that fails. Much more fails," she said. "Then Europe fails. The idea of European unity fails."

Sarkozy´s ultimatum came at a Brussels summit of leaders of the 16 countries in the single currency. It was called to rubber-stamp a €110bn rescue package for Greece, but was overtaken by events.

The financial markets were targeting Spain and Portugal and the Greek emergency had escalated into a full-blown euro crisis. After months of handwringing, the leaders had to come up with a much bigger deal to underpin the euro. By 11.30 pm, several sources said, the summit was deadlocked, with Merkel digging in against a rescue fund to which Germany would need to contribute at least €120bn.

Diplomats at the time reported that the summit was going very badly and would continue through the night.

But it ended half an hour later after Sarkozy abruptly announced he was leaving. "Sarko said: ´For me it´s over. I´m stopping this if we can´t agree,´ " said a diplomat.

Sarkozy came downstairs and staged a triumphalist press conference, announcing a radical breakthrough, an agreement that was "95% French".

Source: guardian.co.uk



Related Articles
Euro Falls to Lowest Since Lehman as Breakup Concern Increases
Collapse of the euro is "inevitable": Bailing out the Greek economy futile, says FRENCH banking chief


Latest News from our Front Page

Air Algerie AH5017 with 116 onboard goes missing for hours, found crashed in Mali
2014 07 24
An Air Algerie flight carrying 110 passengers and six crew members has reportedly crashed in Mali after having disappeared from radar early on Thursday morning between Burkina Faso and Algeria. A French Ministry of Defense official told Fox News that the two French fighter jets located the wreckage of the plane, which had crashed in Mali. An airport official additionally confirmed ...
US says they tracked missile that brought down Malaysian Air Flight 17
2014 07 24
An anonymous senior administration official is claiming that U.S. intelligence tracked the missile that downed Malaysia Airlines flight MH17. Without providing any evidence, the unnamed official accuses Russia of the attack. All questions remain as it’s not known if this information was gathered in real time or retroactively - or whether the evidence exists at all. It certainly makes one question ...
Roswell, UFOs and Project Pandora
2014 07 23
Well, now, this is interesting. In fact, it’s very interesting. Over at the Department of Defense’s website you can find a file that has been declassified via the Freedom of Information Act on the subject of Project Pandora (which, to a significant degree, was focused on Cold War secrets, and how microwaves can affect the mind and body). It’s a fascinating ...
Men of Europe, Put Down the Eckhart Tolle Book and Pick up Your Sword
2014 07 23
Remember who you really are... The New Age Tactical Spiritual Military Industrial Complex supports murder and genocide. What is happening in Gaza today will eventually take place in London, Dublin, New York, Lisbon, Barcelona, Oslo, Glasgow, Melbourne, Stockholm, Auckland and Cape Town and wherever you are reading this article. Notice is being served upon all humanity. Not just the people of ...
Study Challenges Hypothesis that Birds Evolved from Dinosaurs
2014 07 23
The re-examination of Scansoriopteryx – a sparrow-sized, pre-Archaeopteryx, bird-like creature that lived in what is today China during the Jurassic period, about 154 million years ago – challenges the widely accepted hypothesis that birds are derived from land-dwelling dinosaurs that gained the ability to fly. Unearthed in Inner Mongolia in 2002, Scansoriopteryx was previously classified as a theropod dinosaur, from which ...
More News »